The Contemporary Hospitality Industry

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2.For consumers, the franchisee frequent changes to bring them confused, causing franchisor, franchisee incumbent

Previous franchisees and responsibilities between unclear, mutual shirk responsibility

A franchise can only focus on a particular field, but can not in all markets have achieved a strategic victory[5]

Managment contract

A management contract is an arrangement under which operational control of an enterprise is vested by contract in a separate enterprise that performs the necessary managerial functions in return for a fee. Management contracts involve not just selling a method of doing things (as withfranchising or licensing) but involve actually doing them. A management contract can involve a wide range of functions, such as technical operation and of a production facility, management of personnel, accounting, marketing services and training.

In Asia, many hotels operate under management contract arrangements, as they can more easily obtain economies of scale, a global reservation systems, brand recognition etc. It is not unusual for contracts to be signed for 30 years, and having a fee as high as 3.5% of total revenues and 6-10% of gross operating profit. Management contracts have been used to a wide extent in the airline industry, and when foreign government action restricts other entry methods. Management contracts are often formed where there is a lack of local skills to run a project. It is an alternative toforeign direct investment as it does not involve as high risk and can yield higher returns for the company. The first recorded management contract was initiated by Qantas and Duncan Upton in 1978.

Advantages/disadvantages:

A businessman who owns several companies, cannot distribute his attention amongst every minute detail of his companies. He needs some expert assistance with his work so he can concentrate on more broader aspects. This assistance can be provided by the contract management companies. On hiring such companies, the owner will have more time to concentrate on the expansion of the business rather than day-to-day working of the companies. The businessman can distribute some of his basic responsibilities to these management companies such as recruitment, deployment and retention.

Management contracts gives businessman an assurance of the continuity of his business. This can be illustrated through an example. A manager or any employee may terminate his job, leaving the business a hole in its team for the smooth functioning of the operations. A contract management company can easily change few employees without stirring the constancy of the business model.

Entering into a management contracts might lead to difficulties and problems for the business owners. By entering into such agreements businesses are risking their privacy. When a businessman handover his company’s management to a third party, he may enter into confidential disputes. These contracts makes the business expose to ethical breaches, fraud and public exposer. The information of the other contracts made by the business is also available to the management contract companies. Since there responsibilities ranges from price negotiation to stock control they have full information about the vendors. Management responsibilities includes record of all employees, their personal information and payments procedures. Management contract companies have the information of the business finance also. This puts the business in a vulnerable position.

International management can be very risky for the management companies. If a country is going through a political or social turmoil, the manager’s life is put at risk to carry on the business in such a situation.[6]

Organizational structure

2.1 organizational chart for small and big hotel

small hotel

[pic 1]

Organization big hotel

[pic 2]

2.2 Functions and roles 功能和作用

2.2.1Front Office:

The lobby and reception unit is used to entertain guests, marketing and other hotel rooms and catering services, it offers a range of integrated services sector.

Status and Role of Front Office are in the hotel and it is linked to the tasks, though it is the hotel's main business sectors, but its hotel market image and service quality as well as the management level and economic benefits have a crucial influences.

1. Front Office is the hotel's open windows, the hotel reflects the overall quality of service.

2. The front office is to give guests a first impression and last impression of the place.

3. Front Office is a certain economic role.

4. The front office has a coordinating role.

5. Front Office work will help improve scientific hotels scientific decision-making.

6. The front office is an important part of establishing a good relationship between the guests.

Second, the front office of the main tasks:

1. Marketing rooms;

2. It offers a variety of integrated services (airports, stations and shuttle guests; Porters; taxi; Posts; inquiries, etc;).

3. The collection, processing, processing and transmission of information;

4. receive guests;

5. The control condition of the rooms;

6. Persons Rooms transactions.[7]

2.2.2 food and beverage

Food and beverage service is the service of food made in the kitchen and drinks prepared in the bar to the customer (guest) at the food & beverage premises,which can be restaurants,bars,hotels,airlines,cruise ships,trains,companies,schools,collegs, hospitals,prisons,takeaway,etc.

Food & beverage outlets are divided in to the following categories:

Restaurants:restaurants are places where food &

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